OK, so lettings inventory and property compliance specialists, VeriSmart, have been crunching the numbers and looked at the value of a postcode when it comes to the initial letters and numbers that form it. Using this formula they have then found which are the most valuable when it comes to the average rent per month.
VeriSmart stripped each UK outcode (the first half of a postcode) to its initial letter, and the incode (the second half of a postcode), to its first number. VeriSmart then compiled the average monthly rental values for each letter and number , ranking them in order, to show which combination is best when playing buy-to-let postcode bingo.
The research shows that where letters are concerned, the W postcode is home to the highest average rent at £1,734 a month.
When coupling this with the most lucrative rental number, a 6 would have buy-to-let landlords shouting bingo with an average monthly rent of £1,217 across postcodes with an incode starting with a 6.
So the best buy-to-let bingo postcode for the highest rental yield would be Wxx 6xx.
Where the outcode is concerned the next best options are: -
• E: £1,559
• S: £1,470
• U: £1,362
• K: £1,360
Whereas the next best numbers you are looking for in the incode are:
• 7: £1,217
• 0: £1,117
• 4: £1,170
• 9: £1,170
The lowest combination would be Fxx 3xx, with an average monthly rent of £539 in outcodes starting with an F and £1,086 in incodes starting with a 3.
Jonathan Senior, Founder of VeriSmart, had this to say: “Successive changes to buy-to-let rules and regulations have seen many landlords turn their back on the sector. However, it remains a lucrative business and for those that do their research and remain on top of the changes, the UK property market can still provide a good return on their investment.
The key to finding a profitable buy-to-let is to analyse the market on the most granular level possible and while this research is just a bit of fun, it does highlight how rental prices vary drastically across criteria like postcode, as well as other factors like property type and proximity to sought after amenities.”
